Cupcakes and Granola Bars Are Substitutes in Consumption

question 369

Multiple Choice

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases. As a result, the demand for

• A) cupcakes will increase, that is, the demand curve will shift rightward.
• B) cupcakes will decrease, that is, the demand curve will shift leftward.
• C) granola bars will decrease, that is, the demand curve will shift leftward.
• D) granola bars will increase, that is, the demand curve will shift rightward.

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Definitions:

Explanation

The act or process of making something clear or understandable, often by providing details or reasons.

Argument

A set of statements intended to establish a position or point of view, typically consisting of premises and a conclusion.

Explanandum

The proposition whose truth one is attempting to explain.

Diagram

A visual representation designed to illustrate the relationships between different elements of a system or process.